Serbia: less economic growth expected

First effects of the stabilization and association agreement between Serbia and the EU (see article "Serbia abolishes customs dues on goods from the EU") may already be felt by the Serbian population. Apart from a number of other customs duties those on cars imported from the EU have been cut by 50 per cent by this interim agreement.

Serbia’s government hopes that this agreement will not only result in a reduction of prices for EU-products but also lead to a production input for the country’s economy which has also got under pressure due to the difficult situation worldwide.

In its recent report on the region (”CEE Quarterly”) the Italian parent company of Bank Austria, UniCredit, expects the Serbian economy to grow by only 1 per cent this year. Last year the GDP´s growth rate of 5,5 per cent was significantly higher. 

According to Serbian authorities the country’s foreign trade deficit grew by 15,2 per cent (€ 8,2 billion) last year. Imports grew by 15,3 per cent, reaching € 15,6 billion, while exports grew by 15,5 per cent, reaching € 7,4 billion. In 2008 more than half of Serbia’s exports went to EU-countries.